Please help me Job #3006, which was an order from Sport Equipment, was completed during theperiod. Additional relevant data relating to the job were as follows:Direct materials:CODE 1CODE 2CODE 3RM600RM410RM190AssemblyFinishingInspection 15 hours at RM20 per hour40 hours at RM10 per hour50 hours at RM15 per hourDirect wages:Assembly 20 hoursFinishingInspection 5 hoursMachine hours:10 hoursThe branding patent was used in making Job #3006 at a cost of RM600.Based on normal activity, the company provides information on budgeted overhead asfollows:DepartmentsBudgeted OverheadBudgeted Machine hoursBudgeted labour hoursAssembly Finishing InspectionRM24,000 RM36,000 RM15,0003,6001,8004,8002,4001,0002,400It is recommended that the basis of absorption be as follows: -AssemblyInspectionFinishingmachine hourdirect labour hourdirect labour hourAdministration, selling and distribution expenses are charged to the job at 10% offactory costs.Profit margin is to be maintained at 25% of selling price.Required:Calculate the predetermined absorption rates for each department.(a)(b)Determine the selling price of the Job #3006.

Predetermined Absorption rates= Budgeted Overhead/ Basis of absorption units

Answered: Required: (a) Calculate the…

Required: (a) Calculate the predetermined absorption rates for each department. (b) Determine the selling price of the Job #3006.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 2PA: York Company Is a machine shop that estimated overhead will be $50,000, consisting of 5,000 hours of...

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please help me

Job #3006, which was an order from Sport Equipment, was completed during the
period. Additional relevant data relating to the job were as follows:
Direct materials:
CODE 1
CODE 2
CODE 3
RM600
RM410
RM190
Assembly
Finishing
Inspection 15 hours at RM20 per hour
40 hours at RM10 per hour
50 hours at RM15 per hour
Direct wages:
Assembly 20 hours
Finishing
Inspection 5 hours
Machine hours:
10 hours
The branding patent was used in making Job #3006 at a cost of RM600.
Based on normal activity, the company provides information on budgeted overhead as
follows:
Departments
Budgeted Overhead
Budgeted Machine hours
Budgeted labour hours
Assembly Finishing Inspection
RM24,000 RM36,000 RM15,000
3,600
1,800
4,800
2,400
1,000
2,400
It is recommended that the basis of absorption be as follows: -
Assembly
Inspection
Finishing
machine hour
direct labour hour
direct labour hour
Administration, selling and distribution expenses are charged to the job at 10% of
factory costs.
Profit margin is to be maintained at 25% of selling price.
Required:
Calculate the predetermined absorption rates for each department.
(a)
(b)
Determine the selling price of the Job #3006.

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